Debt-to-income ratio calculator
See what share of your gross income goes to debt each month and how lenders may view it.
To reach 36%, you’d need to cut about $290 in monthly payments or raise your income.
How it works
Debt-to-income ratio equals your total monthly debt payments divided by your gross monthly income. Lenders use it to judge whether you can take on more debt.
Many lenders prefer 36% or lower, and 43% is a commonly cited upper limit for mortgages. Requirements vary by lender and loan type.
Example
With the sample inputs shown above (Gross monthly income ($) = 6000; Rent or mortgage payment ($) = 1600; Credit card minimums ($) = 150; Auto loan payment ($) = 420; Student loan payment ($) = 280; Other debt payments ($) = 0), the calculator returns: Total DTI: 40.8% (Borderline for many lenders); Housing share: 26.7% (Of gross income); Monthly debt: $2,450.
Things to know
Use gross income before taxes and include every required monthly debt payment, such as car loans, student loans, and card minimums. Do not include groceries or utilities. Lenders also look at credit history and savings, so DTI is only one part of an application.